Q4 2023 Earnings Summary
Reported on Jan 9, 2025 (After Market Close)
Pre-Earnings Price$19.44Last close (Feb 28, 2024)
Post-Earnings Price$17.22Open (Feb 29, 2024)
Price Change
$-2.22(-11.42%)
- Record high bookings in 2023, with the highest bookings in the company's history occurring in December, indicating strong demand and a robust pipeline, especially in asset management and insurance sectors. Large prospects, including ones that would not have engaged three years ago, are now in the pipeline.
- The completion of the public cloud migration has freed up 60% of R&D capacity for innovation and growth, allowing the company to invest in new products expected to impact revenue growth in the second half of 2024 and more substantially in 2025, driving towards a sustained Net Revenue Retention (NRR) of 115%.
- The company is making significant investments in expanding into Europe and Asia-Pacific, with senior leadership hires in these regions, aiming to accelerate growth in markets where international revenue grew to 18% of total revenue in 2023, with Asia growing the fastest albeit from a small base.
- Revenue guidance for 2024 is below the company's target growth rate of 20%+, indicating potential growth deceleration. The company guides for 17% to 19% year-over-year growth for 2024 , which is lower than the 20%+ growth they aspire to.
- The Jump acquisition did not meet its ambitious growth targets, failing to achieve the performance thresholds for RSU vesting. This may suggest potential challenges with integration or overestimation of growth prospects.
- Net Revenue Retention Rate (NRR) has decreased over the past few quarters, from 109% to 107%, which may signal challenges in upselling or expanding with existing customers.